April 8, 2014

 

Mexico remains the largest market for US red meat exports

 

 

Despite growing concerns about tight supplies and rising prices, US pork and beef exports performed well in February, buoyed by double-digit export growth to Mexico - the largest volume market for all US red meat exports, according to statistics released by the USDA and compiled by the US Meat Export Federation (USMEF).

 

In the first two months of 2014, beef sales to Mexico are up 26% in volume to 37,638 tonnes and 40% in value (US$183 million), while pork exports are 16% higher in volume (113,677 tonnes) and 21% in value (US$222.3 million). Mexico also is the largest volume and value market for US lamb exports.

 

February pork exports totalled 182,412 tonnes, up 2% from a year ago, while export value also rose 2% to US$506.4 million. Cumulative exports for the first two months of the year similarly were 2% ahead of last year's pace in both volume (373,973 tonnes) and value (US$1.04 billion).

 

February beef export volume was down slightly from a year ago to 85,876 tonnes, reflecting smaller variety meat exports, but value was up 12% to US$480.3 million. January-February exports were 6% higher in volume (183,700 tonnes) and 14% in value (US$994.8 million).

 

"Mexico continues to be an invaluable trading partner for our industry," said Philip Seng, USMEF president and chief executive officer.

 

February pork exports equated to 27.5% of total pork production (muscle cuts plus variety meat) and 23% of muscle cut production alone. Export value averaged US$58.42 per head slaughtered, up 2% from a year ago and the highest monthly average since March 2012.

 

Strong demand in Mexico continues to be an important driver of US pork exports, as February shipments far exceeded last year's totals and even topped the very strong results posted in February 2012.

 

"Just as the porcine epidemic diarrhoea virus (PEDv) has had an impact on domestic pork production in Mexico, it has likely been a factor in pork imports trending higher to South Korea," said Seng.

 

Top performing markets in February (with comparisons to a year ago) included: Mexico, up 25% in volume (53,852 tonnes) and 35% in value (US$109.1 million); exports to Japan, the leading value market for US pork, were 7% higher in volume (35,692 tonnes) but 5% lower in value (US$139.8 million); volume edged higher in Korea (12,643 tonnes, +3%) and export value climbed 10% to US$36.6 million; exports to Colombia, which has quickly emerged as the largest market for US pork in the Central-South America region, nearly doubled in both volume (4,288 tonnes, +88%) and value (US$11 million, +89%); exports to Australia continued to rebound (5,987 tonnes, +11% with value US$20.4 million up 17%); exports trended lower in February to China/Hong Kong on sharply lower demand for variety meat. Exports to Canada struggled in part due to the weakened Canadian dollar.

 

February beef exports equated to 14% of total beef production and 11% of muscle cut production alone. Export value averaged US$277.40 per head of fed slaughter, up 16% from a year ago and just short of the record total achieved in December 2013 (US$279.16).

 

Top performing markets in February (with comparisons to a year ago) included: Japan was sharply higher than a year ago in both volume (14,377 tonnes, +48%) and value (US$91.7 million, +40%), as exports to Japan under the expanded 30-month age restriction did not gain momentum until March 2013; exports to Mexico were up 29% in volume (17,410 tonnes, though this was the smallest monthly total since May) and surged 56% in value (US$89.3 million); Hong Kong continued to build on its strong 2013 performance, with exports increasing 15% in volume (10,024 tonnes) and 32% in value (US$63.9 million); coming off two down years caused by import restrictions, and continuing the momentum from October 2013, Indonesia was US beef's top destination in Southeast Asia with exports totalling 1,136 tonnes valued at US$5.1 million; beef exports to Canada have slumped along with the purchasing power of the Canadian dollar. Exports are also off to a slow start this year in Egypt, Taiwan and the Philippines. Smaller volumes have been exported to Korea, but at higher prices, with value up 17% in the first two months of the year.

 

Lamb exports in February rose 1% in value (US$2 million) on 6% lower volumes (849 tonnes). Mexico continues to be the dominant purchaser, accounting for 86.8% of the volume of lamb exports in the first two months of the year and 55.1% of the value. The Caribbean is the No. two market, with exports through the first two months of 2014 up 49% in volume and 23% in value. Saudi Arabia, which continues to emerge as a destination for US lamb, is the third-largest single-country export market behind Mexico and Canada.